CAPITAL METALS PLC

Regulatory Filings • Feb 10, 2023

National Storage Mechanism | Additional information

RNS Number : 5653P

Capital Metals PLC

10 February 2023

10 February 2023

Capital Metals plc

("Capital Metals",  the "Company" or the "Group")

Update re Temporary Suspension of Industrial Mining Licences

Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the "Project"), provides the following update regarding the temporary suspension of the Company's Industrial Mining Licences ("IML(s)") announced on 12 December 2022.

Following receipt of the notice from Sri Lanka's Geological Survey and Mines Bureau ("GSMB") to the Company's Sri Lankan IML-holding subsidiary, Damsila Exports Pvt Limited ("Damsila"), the Company has been in frequent and productive communication with senior GSMB and other departmental officials in Colombo seeking to resolve concerns around the ownership structure of Damsila. While the Company's legal position is that its ownership structure conforms with the Sri Lankan statutory requirements, the Board's objective is to derive a pragmatic solution to satisfy the GSMB that the spirit of the law requiring local ownership of mining and primary processing activities is reflected. Processes are underway, in cooperation with the GSMB, to amend the Group's corporate structure in order to have the temporary suspension of the IMLs lifted as soon as possible. Further updates will be announced in due course.

Michael Frayne, Chief Executive Officer, commented:

"Whilst we were advised that our ownership structure is legally correct, the overarching objectives are to satisfy the GSMB that the spirit of the law is reflected in our ownership structure and have the IMLs promptly reinstated. We believe this can be achieved in a timely manner and without materially impacting the Company's economic value in the Project. In the meantime, we are encouraged by the discussions with prospective offtakers and local strategic partners which have continued to advance positively."

For further information, please visit www.capitalmetals.com or contact:

Capital Metals plc Michael Frayne (CEO) James Mahony (CFO)	Via Vigo Consulting
Vigo Consulting (Investor Relations) Ben Simons / Peter Jacob	+44 (0)20 7390 0234 capitalmetals@vigoconsulting.com
SPARK Advisory Partners (Nominated Adviser) Neil Baldwin / James Keeshan	+44 (0)20 3368 3554
Tavira Financial Jonathan Evans / Oliver Stansfield	+44 (0)20 7100 5100

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCGLGDDDXBDGXG